V-Guard Industries (532953) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 saw consolidated revenue rise 14.1% YoY to ₹1,755 crore, with PAT up 23% to ₹112 crore; full-year revenue reached ₹5,966 crore, up 7%, while PAT declined 1.7% to ₹308 crore due to a ₹22 crore exceptional charge from new Labour Codes.

• All business segments delivered Q4 growth, led by Electronics and Electricals; Consumer Durables saw modest growth.

• Sunflame integration is progressing well, with early benefits in cost, performance, and customer satisfaction; merger with Sunflame Enterprises approved in principle.

• Board recommended a final dividend of 150% (₹1.50 per share) for FY26, pending AGM approval.

• Cash generation and working capital management remained strong, with net cash at ₹231 crore as of March 2026.

Financial highlights

• Q4 FY26 revenue: ₹1,755.27 crore (+14.1% YoY); PAT: ₹112.13 crore (+23% YoY); EBITDA: ₹170.72 crore (+19.3% YoY); gross margin at 35.3%.

• FY26 revenue: ₹5,965.78 crore (+7% YoY); PAT: ₹308.33 crore (-1.7% YoY); EBITDA: ₹526.76 crore (+2.6% YoY); EBITDA margin at 8.8%.

• Net cash as of March 31, 2026: ₹231.16 crore, up from ₹63.83 crore a year earlier.

• ROE and ROCE for FY26 at 13.0% and 16.1%, respectively.

• Standalone EPS for FY 2025-26 was ₹5.92; consolidated EPS was ₹7.03.

Outlook and guidance

• Expecting a strong start to FY27, supported by a favorable summer and improved demand.

• Targeting 10-12% volume growth and 1-2% price growth, aiming for 15% overall growth.

• Double-digit EBITDA margin (around 10%) is the medium-term goal, contingent on inflation trends and summer demand.

• Continued monitoring of West Asia crisis for commodity inflation and supply disruptions.